USD/JPY Analysis: Gains momentum early on Tuesday

Dukascopy Bank Team Dukascopy Bank SA

Minor downside risks dominated the USD/JPY exchange rate on Monday, as it closed the session with a 60-pip fall.

The lack of bearish stimulus did not allow the Greenback to breach the combined support of the 100– and 200-hour SMAs circa 106.20. Thus, the Asian session started with a solid surge which erased all losses accumulated during the previous day.

The pair is currently trading in a two-week ascending channel. Given that its lower boundary was not reached yesterday, the pair could reverse significantly its current market sentiment and go for a test of this line, the weekly PP and the 100-hour SMA at 106.40 during the first part of the day. The remaining session is likely to be dominated by the US inflation data released at 1230GMT.

Interested in USDJPY technicals? Check out the key levels

1. R3 107.51
2. R2 107.25
3. R1 106.84
PP 106.57
1. S1 106.16
2. S2 105.9
3. S3 105.48

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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